Moving Standard Deviation

Moving Standard Deviation (MSD) is a statistical dimension of market volatility. It makes no predictions of market direction, but it works as a confirming indicator. The trader can specify the number of periods to use and calculates the standard divergence of prices from the moving average (MA) of the prices. Moving Standard Deviation is obtained by calculating an ‘n’ time period SMA of the data item and it calculates the squares of the difference between the data and its moving average on each of the preceding ‘n’ time periods. Finally, it divides this sum by ‘n’ and analyzes the square root of this result. Standard Deviation values ascend drastically when the analyzed contract of indicator changes in value significantly. When markets are steady the readings of low Standard Deviation are normal. Low Standard Deviation readings normally tend to appear before considerable upward changes in price.

The technical analysts generate accurate tips, intraday cash/Option tips, Stock future tips, on the basis of different indicators for our clients. Money Classic Research employs good trading strategy based Moving Standard Deviation for our clients.

 

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